Cable company, BiccCafca had a successful year in which it saw its profit attributable to shareholder increase from just $1 million to $23 million and it has declared a dividend of 30 cents per share for the year. It did not declare any dividend in 1997.
Turnover increased from $287 million in 1997 to $457 million with an increase in sales value of 54 percent and sales volume of 23 percent.
Although exports increased from $44 million to $64 million, the company says it had a strong export performance with new alliances being established in Botswana, Malawi and Mozambique.
The company also secured major contracts with the Zimbabwe Electricity Supply Authority. Its aluminium plant is being updated to meet increased demand.
It says it has now returned to acceptable operating margins, 11 percent last year, up from 3 percent in 1997 and close attention is now being paid to cashflow management to ensure no increase in net debt.
Gearing, it says, remains at 3 percent of the shareholders’ funds.
The company is now fully Y2K compliant and says whilst trading conditions remain difficult, it is budgeting for further growth in 1999.